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Political Economy

Sweden more indebted than Italy: Former PM, Persson

Tuesday, 13 November 2012
Former Swedish Prime Minister, Göran Persson says that Sweden is more indebted than the crisis - hit country of Italy. As such he posit that a Swedish loan bubble is threatening to explode.

The former Social Democrat leader, Göran Persson warned that Sweden is not as well equipped as we think.

"Taken together debt and household debt, Italy is less indebted than Sweden. This could be moved into property prices, "he said in a speech in Gothenburg on Monday evening, writes Swedish daily, Göteborgs-Posten.

He warned that the Swedish people would end up in a vicious circles as house prices continue to fall especially as their collaterals would not cover their loans.

The former finance minister who got the economy back in the 1990s think that the situation today is particularly serious when the Swedish industry are undergoing a structural change, while their economic activities continue to fall. His recipe against high unemployment spells knowledge upgrade and education.

Banks received scathing criticism from the former politician and leader of the country and the newly appointed board pro.
"Good companies with good people are very poorly treated by the banks. The banks are making huge profits and there is a strange discussion that they will distribute money to shareholders rather than lending it to businesses, "he said according to Göteborgs-Posten.

Some of the problems facing Sweden at this moment were highlighted including high unemployment among the youths, excessive Swedish real estate prices, lack of capital and limited banks funding to smaller businesses where some of the main points dwelled in his speech.
By Scancomark.com Team

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